Video Ads - E-Commerce - Lecture Slides, Slides of Fundamentals of E-Commerce

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Chapter 7 E-commerce Marketing Communications

Video Ads: Shoot, Click, Buy

What advantages do video ads have overtraditional banner ads?

Where do sites such as YouTube fit in to amarketing strategy featuring video ads?

What are some of the challenges and risks ofplacing video ads on the Web?

Do you think Internet users will ever develop“blindness” toward video ads as well?

Online Advertising

$31.3 billion in 2011

Advantages:

Internet is where audience is moving

Ad targeting - Greater opportunities for interactivity

Disadvantages:

Cost vs. benefit

How to adequately measure results - Supply of good venues to display ads

Online Advertising from 2003–

Figure 7.1, Page 434 SOURCES: Based on data from eMarketer, Inc., 2011a

Display Ads

Banner ads

Rectangular box linking to advertiser’s Web site

IAB guidelines
e.g., full banner is 468 x 60 pixels, 13K

Pop-up ads

Appear without user calling for them

Provoke negative consumer sentiment - Twice as effective as normal banner ads - Pop-under ads: Open beneath browser window

Rich Media Ads

Use Flash, DHTML, Java, JavaScript

About 5% of all online advertising expenditures

Tend to be more about branding

Boost brand awareness by 10%

Interstitials

Superstitials

Search Engine Advertising

46% of online ad spending in 2011

Types:

Paid inclusion or rank
Inclusion in search results
Sponsored link areas

Keyword advertising
e.g., Google AdWords - Network keyword advertising (context advertising)
e.g., Google AdSense

Search Engine Advertising

(cont.)

Nearly ideal targeted marketing

Social search

Google’s +1, Facebook’s Like

Issues:

Disclosure of paid inclusion and placementpractices

Link farms - Content farms - Click fraud

Sponsorships and Referrals

Sponsorships

Paid effort to tie advertiser’s name to particularinformation, event, and venue in a way thatreinforces brand in positive yet not overtlycommercial manner

Referrals

Affiliate relationship marketing

Permits firm to put logo or banner ad on anotherfirm’s Web site from which users of that site canclick through to affiliate’s site

E-mail Marketing and the

Spam Explosion

Direct e-mail marketing

Low cost, primary cost is purchasing addresses

Spam: Unsolicited commercial e-mail

Approximately 75% of all e-mail

Efforts to control spam:
Technology (filtering software)
Government regulation (CAN-SPAM and state laws)
Voluntary self-regulation by industries (DMA )
Volunteer efforts

Online Catalogs

Equivalent of paper-based catalogs

Graphics-intense; use increasing with increasein broadband use

Two types:

Full-page spreads, e.g., Landsend.com  Grid displays, e.g., Amazon.com

In general, online and offline catalogscomplement each other

Social Advertising

Social advertising

Uses social graph to promote message

Many-to-many model

Social network advertising

Social network sites are advertising platforms
Corporate Facebook pages
Twitter ads

Promoted tweets - Promoted trends - Promoted accounts

Marketing to Children of the Web

in the

Age of Social Networks

Why is online marketing to children a controversialpractice?
What is the Children’s Online Privacy Protection Act(COPPA) and how does it protect the privacy ofchildren?
How do companies verify the age of online users?
Should companies be allowed to target marketingefforts to children under the age of 13?

Behavioral Targeting

Interest-based advertising (behavioraltargeting)

Social marketing

Personal information sold to third partyadvertisers, who deliver ads based on profile

Search engine queries, browsing history, offline data

Ad exchanges

Enable advertisers to retarget ads at users as they browse - 16% online ads are targeted